SACRAMENTO, Calif. (AP) — California's budget deficit has swelled to a projected $16 billion — much larger than had been predicted just months ago — and will force severe cuts to schools and public safety if voters fail to approve tax increases in November, Gov. Jerry Brown said Saturday.

The Democratic governor said the shortfall grew from $9.2 billion in January in part because tax collections have not come in as high as expected and the economy isn't growing as fast as hoped for. The deficit has also risen because lawsuits and federal requirements have blocked billions of dollars in state cuts.

"This means we will have to go much farther and make cuts far greater than I asked for at the beginning of the year," Brown said in an online video. "But we can't fill this hole with cuts alone without doing severe damage to our schools. That's why I'm bypassing the gridlock and asking you, the people of California, to approve a plan that avoids cuts to schools and public safety."

Brown did not release details of the newly calculated deficit Saturday, but he is expected to lay out a revised spending plan Monday. The new plan for the fiscal year that starts July 1 hinges in large part on voters approving higher taxes.

Got that? Just 4 months ago the politicians in Sacramento figured their budget deficit this year would top 9.2 billion. It's MAY and they just got around to realizing, oh hey turns out we were off by about 7 billion or so.

The governor has said those tax increases are needed to help pull the state out of a crippling decade shaped by the collapse of the housing market and recession. Without them, he warned, public schoolsand colleges, and public safety, will suffer deeper cuts.

"What I'm proposing is not a panacea, but it goes a long way toward cleaning up the state's budget mess," Brown said.

Democrats, who control the Legislature, have resisted Brown's proposed cuts so far this year. Republican lawmakers criticized the majority party for building in overly optimistic tax revenues.

CA. Gov. Jerry Brown stunned to find out all that

new $ from last year's tax hikes that they already spent never materialized

So without getting any cuts done, Democrats in CA have continued to spend like drunken sailors without bothering to notice - or care if they did notice - businesses & rich taxpayers are fleeing their state in droves. Their taxable base is shrinking. So they'll just...keep raising taxes on the suckers that are left.

For most Progressives, raising tax rates isn't about generating more revenue for the State to use in the first place. It's about 'fairness', not results. But even the Progressives in CA. are being forced to realize that when you raise the rates you change people's economic activity and you end up collecting less.

Bruce Bartlett wrote a long and definitive refutation of the belief that raising tax rates generates more tax revenue for the State to spend:

Progressives don't learn from the actual history of what happens when tax rates go up because they are THEORY-oriented people who fall in love with an IDEA. The study of actual RESULTS - experience - does absolutely nothing to float their boat. Despite all the evidence to the contrary, they will continue to insist there is no valid reason why their theory won't work THIS time.

Even with the evidence staring them in the face in CA. that tax rates are already too high, all the Progressives can come up with is raising the rates yet again as they refuse to understand the people with the money will simply either change their economic activity or leave the state altogether.

When CA collapses financially, they had better not be expecting a bailout from Washington. What really WOULD be unfair would be expecting taxpayers from states like Texas and Wisconsin who have taken steps to wisely handle their own finances to send billions of their tax money to rescue a state where taxpayers insisted on putting Progressives in charge that refused to practice any sort of fiscal sanity at all. Voters in CA kept putting these big spenders/big taxers in charge. They'll have to live with the consequences of that.

2 comments:

Excellent write-up I really like ones article adore how you described all things, you are doing a terrific work the majority of other folks just like you through that form of helpful sites produce understanding to be able to you related to many things. My spouse and i examine other sorts of fascinating websites from your sites and My business is a lot serious along with your writing a blog skills, I likewise begun to compose information sites which kind sites definitely aid us available. My partner and i witout a doubt book marked your own web page as well as discussed your sites to my own friends not only myself although every one of them just like your running a blog knowledge, trust a person produce additional exciting websites such as this one particular and all the best for your long term sites.

About Me

A Conservative since 1986, I was moved to launch my blogging career on the death of Andrew Breitbart in March 2012. I have been on the internet since 1994, studying Liberal pathology and making PC internet bullies scream in frustration.

Help Support This Blog!

If you enjoy reading this blog and have learned anything useful or informative, please consider supporting my mission to be a citizen journalist and carrying on Andrew Breitbart's righteous indignation by donating whatever you can via PayPal! You can use any credit card too!